IS Chapter 9

Global economy

Creating increased customer demand for integrated worldwide services

Revenue-generating transactions

focus on buying and selling goods and services

Global Information System (GIS)

information system that works across national borders

Geographic Information Systems (GIS)

A geographic information system consists of integrated computer hardware and software that store, manage, analyze, edit, output, and visualize geographic data

Multinational corporation (MNC)

Organization with assets and operations in at least one country other than its home country

MNC GIS Classifications

Operational support: involves day-to-day activities. Tactical support: concentrates on medium-range activities that move organization toward long-term goals, Strategic support: includes broad and long-term goals

Multinational Structure

Production, sales, and marketing are decentralized. Financial management is the parent company’s responsibility (Centralized)

Global Structure

Subsidiaries rely on headquarters for all process and control decisions, as well as system design and implementation

International Structure

Subsidiaries depend on headquarters for process and production decisions. Financial and info are based on the subsidiaries

Transnational Structure

Parent company and subsidiaries work together: Design policies, procedures, and logistics for delivering products and services to the right market. Organization’s headquarters is not set up in any particular country

Offshore Outsourcing

Organizations choose an outsourcing firm in another country that can provide services and products

Obstacles to Using Global Information Systems

Lack of standardization, Cultural differences, Diverse regulatory practices, Poor telecommunication infrastructures, Lack of skilled analysts and programmers

Lack of Standardization

can impede the development of a cohesive GIS. Time zones can cause an issues because of backups and maintenance

Cultural Differences

Differences in values, attitudes, and behaviors play an essential role in using GISs

Diverse Regulatory Practices

Apply to policies on business practices and technological use: Jurisdiction issues regarding the contents of a GIS, Nature of intellectual property laws and how they are enforced. Privacy and cybercrime laws, censorship, and government control

Poor Telecommunication Infrastructures

Organizations must consider telecommunication infrastructures in subsidiary countries

Lack of Skilled Analysts and Programmers

Nature of culture and differences in skills in other countries must be considered when forming teams. Training and certification programs offered through the Internet can reduce skills gap in developing nations

GIS Control

Consists of using managerial power to ensure adherence to the orgs goals.

GIS Coordination

The process of managing the interaction among activities in different, specialized parts of an org.

Transborder data flow (TDF)

restricts what type of data can be captured and transmitted in foreign countries.